JAZA’s remarks at the Ayala Group’s 4th Annual Integrated Corporate Governance, Risk Management, and Sustainability Summit
Our Ayala Chairman Jaime Augusto Zobel de Ayala delivered his keynote speech at the Ayala Integrated Summit yesterday. Attached is a copy of the speech and below are key points that you may find helpful.
Core message: Ayala chairman Zobel calls for a stakeholder mindset shift for a sustainable and equitable future for all.
Our climate ambition: In 2021, we announced our commitment to Net Zero Greenhouse Gas Emissions by 2050. With South Pole, we aim to have our Net Zero Roadmap ready by end of next year. This encompasses full accounting and validation of emissions, intervention assessments, and setting science-referenced targets for each business unit.
Results to date:
Ayala Land and ACEN have both completed their greenhouse gas emissions baselining, including complex Scope 3 emissions in their value chains.
Harness the Ayala group’s synergy. We will bring new technologies for expanded access to sustainable energy and mobility.
In the pipeline:
AC Motors will start selling Kia EV6 in January 2023. IMI is manufacturing in its Laguna facility, EV charging stations, and adjacent technologies within the EV ecosystem. These charging stations will be made available in Ayala Land Malls and Estates.
Continue to innovate boldly. In pursuing the right balance of profit and purpose, we will continue to create innovative solutions that will empower communities and scale our businesses for affordable, relevant, and socially meaningful products and services.
Achieved to date: New way of fund-raising and doing business.
The IFC has invested USD 100million in the Philippines’ first social bond in healthcare. This will allow AC Health to expand access to affordable healthcare and build the country’s first cancer care hospital.
ACEN and BPI have adopted the ADB’s Energy Transition Mechanism principles in facilitating funding for the energy transition. This loan facility will allow ACEN to decommission its coal plant in Calaca, Batangas by 2040 – ahead of its 15-year life cycle. It will reallocate funds into renewable energy investments.
Creating and measuring social impact in our businesses require a mindset shift across our stakeholders.
Long term goal: Build a culture of steward leadership and shared value
“In the face of complex challenges such as those that the last two years have shown us, we are called to become steward leaders, with a responsibility to care for future generations, the environment, and society at large. It is this mindset of stewardship and guiding principle of creating shared value that will pave the way toward long-term resilience, sustainability, and equality. The profound challenges that businesses face today demand a culture of transformation, guided by tenacity and a desire for lasting change. “Jaime Augusto Zobel de Ayala
JAZA was joined by other speakers at the forum:
Solomon M. Hermosura, Chief Governance Officer, Ayala Corp.
“The mindset of doing business while doing good has become the driving force of the Ayala group… But we are never contented. We will not stop making sure we have the right mindset, and we are doing our part in ushering the new era of corporate social responsibility.”
Gail Whiteman, Executive Director, Climate Basecamp on Shaping the Strategic Direction on Climate
“The Arctic is such a small ocean that drives such a big punch throughout the world. Typhoons have always come through in Southeast Asia. The Arctic is driving [the typhoons] . . . making them bigger, and they stick around longer, and they cause more damage to both people and assets at the same time. Net Zero and business leadership are not enough. What we need is courageous leadership – without courage, we will not get to where we want to be.”
Rajeev Peshawaria, CEO, Stewardship Asia Center on Governance: Steward Leadership
“Steward Leadership is the genuine desire and persistence to create a better future, but not just any better future. We are talking about creating a collective, better future for multiple stakeholders, society, future generations, and the environment.”
Lois Guthrie, Senior Technical Advisor, IFRS Foundation on Reporting Standards: Rethinking reporting and disclosures
“We are encouraging connections, integration, a complete story, a holistic picture of what the company is doing, how it’s performing what its views are about its prospects… so that together they can work out the implications of sustainability, related risks, and opportunities and impacts on the company on society.”
Anouk Heilen, Global Sustainability Director for Social Impact, Unilever on Social Equity: the business of doing good
“It’s important to not only think about doing good which is so important and companies take [on] their responsibility, but also really think about the business case and the commercial reasons behind it. . . “
Alfredo M. Coro II, Mayor, Municipality of Del Carmen, Siargao Group of Islands on Storyteller: From Nowhere to Cover
“On December 16, 2021, Super Typhoon Odette, made landfall in Del Carmen and devasted our island of Siargao. Storm surges were as high as 6 meters and destroyed our homes, our livelihood, and our dreams. But we survived the 4-hour storm after 10 years of preparing for a Climate Extreme Weather Event. . . We started co-creating solutions that will address the social determinants that will allow the local government to influence the behavioral change of our constituency. These local solutions are done on top of national government programs that expand our ability to deliver quality public services that our people rightfully deserve.”
Alberto M. De Larrazabal, CFO, CRO, CSO and Finance Group Head,
Ayala Corp.
“Jaime [Zobel de Ayala] spoke of the challenges we face as we try to rebuild our economy coming out of COVID, and the need to stay the course, adapting our governance culture, systems, and processes if we have any chance at all of reversing the effects of climate change and further the cause for social equity.”
